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1783

 

House of Commons

 
 

Wednesday 25 March 2015

 

Committee of the whole House

 

New Amendments handed in are marked thus Parliamentary Star

 

Finance (No. 2) Bill


 

Note

 

The Amendments have been arranged in accordance with paragraph (4) of the

 

Business of the House (24, 25 and 26 March) Order of 24 March 2015.

 


 

new clause relating to value added tax

 

Ed Balls

 

Chris Leslie

 

Shabana Mahmood

 

Cathy Jamieson

 

NC1

 

Parliamentary Star    

To move the following Clause

 

         

“Report on impact of value added tax

 

(1)    

The Chancellor of the Exchequer shall, within three months of the passing of this

 

Act, publish a report on the impact of the increase in the standard rate of VAT

 

which took effect from 4 January 2011.

 

(2)    

The report must estimate the impact of the increase in the standard rate of value

 

added tax on—

 

(a)    

living standards;

 

(b)    

small businesses;

 

(c)    

the fairness of the taxation system; and

 

(d)    

economic growth.”

 



 
 

Committee of the whole House: 25 March 2015              

1784

 

Finance (No. 2) Bill, continued

 
 

Ed Balls

 

Chris Leslie

 

Shabana Mahmood

 

Cathy Jamieson

 

Caroline Lucas

 

1

 

Parliamentary Star    

Clause  1,  page  2,  line  1,  at end insert—

 

“(3)    

The Chancellor of the Exchequer shall, within three months of the passing of this

 

Act, publish a report on the impact of setting the additional rate of income tax at

 

50 per cent.

 

(4)    

The report must estimate the impact of setting the additional rate for 2015-16 at

 

45 per cent and at 50 per cent on the amount of income tax currently paid by

 

someone with a taxable income of—

 

(a)    

£150,000 per year; and

 

(b)    

£1,000,000 per year.”

 


 

Ed Balls

 

Chris Leslie

 

Shabana Mahmood

 

Cathy Jamieson

 

 

2

 

Parliamentary Star    

Clause  6,  page  3,  line  39,  at end insert—

 

“(3)    

The Chancellor of the Exchequer shall undertake a review, within six months of

 

the passing of this Act, of the impact of a cut of one per cent to the main rate of

 

Corporation Tax for financial year 2016, with particular reference to—

 

(a)    

the impact on businesses with fewer than 50 employees;

 

(b)    

the impact on investment by businesses with fewer than 50 employees;

 

and

 

(c)    

alternative tax measures, including non-domestic rates, which would

 

have a greater benefit for businesses with fewer than 50 employees.

 

(4)    

The Chancellor of the Exchequer must publish the report of the review and lay

 

the report before the House.”

 



 
 

Committee of the whole House: 25 March 2015              

1785

 

Finance (No. 2) Bill, continued

 
 

Caroline Lucas

 

Andrew George

 

3

 

Parliamentary Star    

Clause  21,  page  24,  line  46,  at end insert—

 

“809EZI 

  Commencement

 

This Part shall not come into force until the Chancellor of the Exchequer has

 

published a report on the impact of including “carried interest” in the definition

 

of “management fee” in section 809EZA.”

 

Member’s explanatory statement

 

This Amendment would delay implementation of changes to legislation that would allow private

 

equity fund managers who have formed Limited Liability Partnerships to avoid “carried interest”

 

being taxed as ordinary income until the Chancellor of the Exchequer has published a report on

 

the impact of including “carried interest” in the definition of “management fee”.

 

Caroline Lucas

 

Andrew George

 

NC2

 

Parliamentary Star    

To move the following Clause

 

         

“Income tax treatment of private equity fund securities

 

(1)    

The Chancellor of the Exchequer shall, within three months of the passing of this

 

Act, publish a report on the impact of changing the income tax treatment of

 

employment-related securities where the employment relates to the operations of

 

a collective investment scheme the sole or main purpose of which is to invest in

 

unquoted shares or securities.

 

(2)    

The report mentioned in subsection (1) must in particular assess the impact of

 

treating as employment income of the employee for the tax year in which it arises

 

any sum arising in respect of such a security (being a sum not otherwise charged

 

to income tax) which (whether in connection with a disposal or otherwise)

 

directly or indirectly represents profits or gains on investments made for the

 

purposes of the scheme.

 

(3)    

For the purposes of subsections (1) and (2) “employment-related securities”, “the

 

employment” and “the employee” have the meanings indicated in section

 

421B(8) of the Income Tax (Earnings and Pensions) Act 2003 and “collective

 

investment scheme” has the meaning given in section 420(2) of the Income Tax

 

(Earnings and Pensions) Act 2003.”

 

Member’s explanatory statement

 

This New Clause would require the Chancellor to report on the impact of changing the law so that

 

‘carried interest’ is taxed as ordinary income, and therefore at a higher rate, for private equity

 

fund managers.

 

 

Business of the House (24, 25 and 26 March) Order

 

(Extract)

 

 

(4)    

Proceedings on Second Reading and in Committee, any proceedings on

 

Consideration, and proceedings on Third Reading on the Finance (No. 2) Bill

 

shall be completed at the sitting on Wednesday 25 March, as follows—

 

(a)    

proceedings on Second Reading shall be brought to a conclusion (unless

 

already concluded) two hours after their commencement;


 
 

Committee of the whole House: 25 March 2015              

1786

 

Finance (No. 2) Bill, continued

 
 

(b)    

when the Bill has been read a second time, it shall stand committed to a

 

Committee of the whole House and, subject to sub-paragraph (c), the

 

House shall immediately resolve itself into a Committee of the whole

 

House on the Bill;

 

(c)    

where relevant, when the Bill has been read a second time—

 

(i)    

proceedings on the Bill shall stand postponed while the Question

 

is put on any Procedure Resolution relating to the Bill and, in

 

accordance with Standing Order No. 52(1) (financial resolutions

 

in connection with bills), on any Money Resolution or Ways and

 

Means Resolution relating to the Bill;

 

(ii)    

on the conclusion of proceedings on any Procedure Resolution,

 

Money Resolution or Ways and Means Resolution relating to the

 

Bill, proceedings on the Bill shall be resumed and the House

 

shall immediately resolve itself into a Committee of the whole

 

House on the Bill;

 

(d)    

proceedings in the Committee of the whole House shall be taken in the

 

following order: clauses 66 and 67 and new Clauses and new Schedules

 

relating to value added tax; clauses 1 to 5 and new Clauses and new

 

Schedules relating to the charge to, the rates of and the limits and

 

allowances for income tax; clause 6 and new Clauses and new Schedules

 

relating to the charge to, and the main rate of, corporation tax; remaining

 

proceedings in Committee;

 

(e)    

if, on conclusion of proceedings in Committee, the Bill is reported with

 

amendments, the House shall proceed to consider the Bill as amended

 

without any Question being put;

 

(f)    

proceedings in Committee, any proceedings on Consideration and

 

proceedings on Third Reading shall be brought to a conclusion (unless

 

already concluded) six hours after the commencement of proceedings on

 

Second Reading.

 


 
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